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Marital Matching, Labor Market Participation and Individual Welfare Analysis

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Listed:
  • Laurens Cherchye
  • Bram De Rock
  • Khushboo Surana

Abstract

We present a framework to analyse household consumption and time use behavior under the assumption of marital stability while incorporating thedecision to participate in the labor market. Our method follows a revealed preference approach which does not require a prior specification of individual utilities. Using our method and data drawn from the US Panel Study of Income Dynamics, we examine the welfare effects of marriage and the impact of own and spouse’s employment and education on individual well-being. We estimate within-household allocations and conduct a robust individual welfare analysis that documents the important role of employment and education on household bargaining and poverty analysis.

Suggested Citation

  • Laurens Cherchye & Bram De Rock & Khushboo Surana, 2024. "Marital Matching, Labor Market Participation and Individual Welfare Analysis," Working Papers ECARES 2024-07, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:eca:wpaper:2013/374448
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    References listed on IDEAS

    as
    1. Jeremy Lise & Shannon Seitz, 2011. "Consumption Inequality and Intra-household Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 328-355.
    2. HansG. Bloemen, 2010. "An Empirical Model of Collective Household Labour Supply with Non-Participation," Economic Journal, Royal Economic Society, vol. 120(543), pages 183-214, March.
    3. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2017. "Household Consumption When the Marriage Is Stable," American Economic Review, American Economic Association, vol. 107(6), pages 1507-1534, June.
    4. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2007. "Collective Labour Supply: Heterogeneity and Non-Participation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 417-445.
    5. Laurens Cherchye & Bram De Rock & Khushboo Surana & Frederic Vermeulen, 2020. "Marital Matching, Economies of Scale, and Intrahousehold Allocations," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 823-837, October.
    6. Sam Cosaert & Alexandros Theloudis & Bertrand Verheyden, 2023. "Togetherness in the Household," American Economic Journal: Microeconomics, American Economic Association, vol. 15(1), pages 529-579, February.
    7. Cherchye, Laurens & Cosaert, Sam & De Rock, Bram & Kerstens, Pieter Jan & Vermeulen, Frederic, 2018. "Individual welfare analysis for collective households," Journal of Public Economics, Elsevier, vol. 166(C), pages 98-114.
    8. Martin Browning & Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2021. "Stable marriage, household consumption and unobserved match quality," IFS Working Papers W21/31, Institute for Fiscal Studies.
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    11. Ian Crawford & Matthew Polisson, 2015. "Demand analysis with partially observed prices," IFS Working Papers W15/16, Institute for Fiscal Studies.
    12. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
    13. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1267-1303.
    14. Hal R. Varian, 1983. "Non-parametric Tests of Consumer Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 99-110.
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    16. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 11-26, Part II, .
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    Full references (including those not matched with items on IDEAS)

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